Energy experts warn of deepening power crisis, call for integrated reforms

Energy experts on Tuesday warned that deep-rooted structural weaknesses, rising costs and institutional failures have pushed Bangladesh’s power and energy sector into a critical phase, urging the next government to adopt realistic, data-based reforms to avert further instability.

The warning came at a dialogue titled “Sustainable Pathways for the Next Government to Overcome the Power and Energy Crisis” held at the CIRDAP Auditorium in the capital.

Organised by English news portal Just Energy News and moderated by its editor Shamim Jahangir, the discussion brought together policymakers, political leaders and energy specialists who underscored the need for long-term, integrated planning rather than short-term fixes.

Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed said prolonged neglect of primary energy development remains at the core of the crisis.

“Gas exploration was stalled for nearly 16 years, and no realistic reservoir management study has been conducted since 2001,” he said, adding that while limited funds were allocated to energy development, massive investments went into power generation.

Jalal Ahmed also pointed to the limited capacity of floating storage regasification units (FSRUs) for LNG imports, saying sustainable power supply cannot be ensured without prioritising primary energy.

“There has been no significant progress in the coal sector, nor has a new integrated energy policy been introduced since 1996,” he said, stressing the need to focus on efficient use of existing resources and alternative fuels instead of expanding thermal power plants.

Keynote speaker Professor Dr Ijaz Hossain said Bangladesh remains overwhelmingly dependent on fossil fuels, accounting for nearly 97 to 98 per cent of total energy consumption.

He said the country now imports about 60 per cent of its energy and electricity, with reliance increasing further over the past year.

Dr Ijaz Hossain noted that daily gas demand exceeds 4,000 million cubic feet, while supply remains limited to around 2,500 to 2,600 million cubic feet.

“Nearly 30 to 33 per cent of the total gas supply is imported LNG. Even a 10 per cent system loss translates into billions of dollars in losses annually,” he said, calling for stricter control of distribution inefficiencies.

BNP Standing Committee Member Iqbal Hasan Mahmud Tuku described electricity as both a commercial commodity and a public service, saying governments face the difficult task of balancing production costs with affordable pricing.

“This balance requires long-term vision, which cannot be achieved within single five-year tenure,” he said.

Bangladesh Energy and Power Research Council (BEPRC) Member Dr Md Rafiqul Islam emphasised the untapped potential of renewable and alternative resources, including solar, wind, hydropower, biomass and the blue economy.

“To ensure energy security, short-, medium- and long-term plans must be supported by time-bound roadmaps, action plans and accountability mechanisms,” he said.

Former Justice Mainul Islam Chowdhury said Bangladesh’s heavy dependence on gas, oil and coal has made the power sector vulnerable to global price volatility and domestic shortages.

He warned that rapid industrialisation and uninterrupted electricity supply would remain elusive unless sectoral instability is addressed.

Energy expert Professor M Tamim cautioned against abrupt cancellation of power deals without thorough review, saying such moves could disrupt supply and hurt consumers.

Professor Mushtaq Hossain Khan of SOAS University of London said unresolved crises in banking and energy pose serious risks to the broader economy.

“Despite a fourfold increase in power generation, costs have risen 11 times and capacity charges have increased 20 times, largely due to institutional corruption since 2010,” he said.

Bangladesh Jamaat-e-Islami Assistant Secretary General Ahsanul Mahbub Zubair stressed the need for continuity in national policies, saying frequent changes with every new government often worsen existing problems.

BEPRC Chairman Mohammad Wahid Hossain said the incoming government will face formidable challenges, particularly in stabilising the power and energy sectors.

Former secretary of Implementation Monitoring and Evaluation Division Abul Mansur Md Faizullah, former BERC member Md Mizanur Rahman, CEO of Change Initiative M Zakir Hossain Khan, Lead Energy Analyst of IEEFA Shafiqul Alam, President of LPG Autogas Owners Association Md Serajul Mawla, Vice-President of LOAB Humayun Rashid, Secretary General of CNG Refuelling Station Owners Association Farhan Noor, and Chief Corporate Affairs Officer of Robi Shahid Alam spoke, among others, also spoke at the dialogue.